Trade integration as a way forward for the Arab world : a regional agenda

The current political turmoil for more open and participative societies in many Arab countries coupled with the emergence of new growth poles around the world could create the conditions for a big push toward greater regional and global trade integration of the Arab world. Further integrating Arab countries among themselves and opening up the region to the rest of the world are two complementary avenues to improve market access, promote behind-the-border regulatory reforms, facilitate cooperation on regional public goods, foster the emergence of an"Arab factory"through regional supply chains and productions networks, and eventually create the conditions for more and better paid jobs for the growing Arab workforce. A more ambitious trade agenda in the context of the Pan-Arab Free Trade Area would be a good place to start. Although difficult and challenging, and requiring a good dosage of flexibility and variable geometry, such an agenda would consist of (1) completing the free movement of goods within the Pan-Arab Free Trade Area, notably through the elimination of unnecessary non-tariff barriers; (2) implementing a regional initiative to liberalize services trade, including identifying a number of pilot service sectors for early regional liberalization; and (3) strengthening the rules and discipline applicable to regional trade and other policies of common interest.Free Trade,Trade Law,Emerging Markets,Trade and Regional Integration,Trade Policy

Trade finance in crisis : market adjustment or market failure ?

As world leaders have agreed to massively support trade finance, this paper discusses the singularity of the issues related to trade finance in the context of the global economic crisis. Why should international trade finance be a particular issue of concern in the current circumstances? Are there specific market or government failures associated with trade finance that justify a special and differential treatment of the issue by policymakers? If so, what would then be the most appropriate policy instruments to address those concerns? The paper cautions against the notion of a large trade finance"gap,"yet highlights the possible rationales and conditions for an effective intervention in support of trade finance.Debt Markets,Banks&Banking Reform,Access to Finance,Emerging Markets,

Beyond market access : the new normal of preferential trade agreements

This paper takes stock of the growing success of preferential trade agreements. It revisits what are the defining characteristics of modern preferential trade agreements, which are typically pursued for a diverse array of motives. In particular, the market access justification traditionally used to analyze the desirability and impact of preferential trade agreements misses increasingly important dimensions. The"Beyond Market Access"agenda of preferential trade agreements presents a new and broad set of deep regulatory and policy issues that differs in substance from the removal of tariff and quantitative barriers to trade. Issues related to preferences and discrimination, as well as the nature and implementation of commitments acquire a different meaning in deep preferential trade agreements. This change of paradigm presents significant opportunities and challenges for reform-minded developing countries to use preferential trade agreements to their own advantage.Trade Law,Free Trade,Environmental Economics&Policies,Emerging Markets,Trade and Regional Integration

Trade finance in crisis : should developing countries establish export credit agencies ?

New data on export insurance and guarantees suggest that publicly backed export credit agencies have played a role to prevent a complete drying up of trade finance markets during the current financial crisis. Given that export credit agencies are mainly located in advanced and emerging economies, the question arises whether developing countries that are not equipped with these agencies should establish their own agencies to support exporting firms and avoid trade finance shortages in times of crisis. This paper highlights a number of issues requiring attention in the decision whether to establish such specialized financial institutions. It concludes that developing countries should consider export credit agencies only when certain pre-requirements in terms of financial capacity, institutional capability, and governance are met.Debt Markets,Emerging Markets,Access to Finance,Banks&Banking Reform,Financial Intermediation

Harnessing trade opportunities in the Middle East and North Africa

Greater integration into the international economy is a key means through which countries in the Middle East and North Africa can reap the benefits of already existing market opportunities to accelerate economic growth and job creation. An effective economic integration strategy requires complementing reductions in trade barriers with policy reforms to ensure that markets become more competitive (contestable for new entrants) and that operating and transactions costs for firms fall. This paper argues that there are two overarching priority areas for trade-related reforms in many Arab countries: reducing formal trade barriers further, and lowering trade costs through trade facilitation measures and improving “connectivity” for firms, including deeper regional economic integration

Morocco 2040 Emerging by Investing in Intangible Capital

To lay out the possible pathways for Morocco to become the first North African country to attain upper middle income status, the Book then investigates the policies that could bring about such a virtuous scenario of accelerated economic ..